Traders who own Ethereum in their FTX holdings stand to gain back $2,500 as FTX repayments for its Bahamas creditors start this month.
The FTX repayment plan, scheduled to start on Feb. 18, will repay creditors’ claims in full, including interests, through BitGo. However, customers will not be able to gain additional profit from current market prices for their FTX holdings, as the repayment plan will refund crypto holdings in accordance with November 2022 prices.
This means that traders who held Bitcoin (BTC) in the now-fallen crypto exchange will only receive repayment capped at $20,000 per Bitcoin for 98% of its users, as one crypto trader highlighted in a recent post.
Today, Bitcoin has bounded to at nearly five times its market price in 2022. At the time of writing, Bitcoin is trading hands at $97,988, rising slightly by 0.28% in the past 24 hours.
On the other hand, Ethereum (ETH) holders can breathe a sigh of relief as they stand to gain $2,500 from their holdings in FTX. Even though the price of Ethereum today stands at $2,698, a significant gap of nearly $200 from its 2022 price, the loss is not nearly as scalding as it is for Bitcoin holders.
Many traders on X had mixed reactions about the creditor repayments. Most of them were commenting on how the price of Ethereum has remained relatively stable throughout the past two years, while Bitcoin has skyrocketed.
“They should have to pay market value at time of payout!!” said one user.
“Mixed news: BTC recovery, ETH value remains stable,” said another user.
As previously reported by crypto.news, reorganization plans became effective starting from Jan. 3, which required creditor repayments to proceed within 60 days after that. Court filings showed that the defunct crypto exchange has around $13 billion in payout reserves.
Although that may be the case, the estate has filed to withhold half of the total amount for disputed claims. Therefore, the exact sum allocated for Bahamas creditor repayments remains unknown.
The crypto giant FTX collapsed in 2022 led by founder Sam Bankman-Fried. Investigations into the platform revealed corporate mismanagement and fraud, allegedly orchestrated by Bankman-Fried. He was eventually convicted of multiple charges that led to the firm’s downfall and sentenced to 25 years behind bars.
